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Digital signature


Santo Gold

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Our TPA firm obtains authorization from the plan sponsor/plan administrator and files the 5500 for the company.  Can the 5500 signature from the plan sponsor/administrator be digital or does it have to be a "wet" signature in order to be valid?

thank you

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From the 5500 instructions (emphasis added):

Quote

Authorized Service Provider Signatures. A statement for service providers that use this electronic signature option is in the IFILE application. The statement provides that, by signing the electronic filing, the service provider is attesting: (1) that the service provider has been authorized in writing by the plan administrator or plan sponsor/employer, as applicable, to electronically submit the return/report; (2) that a copy of the specific written authorization will be kept in the service provider’s records; (3) that, in addition to any other required schedules or attachments, the electronic filing includes a true and correct PDF copy of the completed Form 5500-SF (without schedules or attachments) return/report bearing the manual signature of the plan administrator or employer/plan sponsor, as applicable, under penalty of perjury; (4) that the service provider advised the plan administrator or employer/plan sponsor, as applicable, that by selecting this electronic signature option, the image of the plan administrator’s or employer/plan sponsor’s manual signature will be included with the rest of the return/report posted by the Department of Labor on the Internet for public disclosure; and (5) that the service provider will communicate to the plan administrator or employer/plan sponsor, as applicable, any inquiries and information received from EFAST2, DOL, IRS or PBGC regarding the return/report.

I understand the reference to "manual" signature to mean that is must be signed by the person's own hand. If they want to sign electronically, the only acceptable option is for them to obtain EFAST credentials.

For what it's worth, most of our clients obtain their own EFAST credentials and sign their own forms. It is a bit of pain the first year but after that they usually don't have any problems.

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

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